2009 Austin Area Market Update - Alamo Title

While homeowners nationwide have watched their home values plummet, the Central Texas real estate market has fared much better in comparison. Economic forecasters now say a looming housing shortage will increase real estate prices within the next two years.

With the relatively healthy local economy encouraging continued population inflows to Austin, economic consultant Angelos Angelou forecasts demand to soon outstrip supply, a theory consistent with current real estate sales absorption rates (see attached).

Angelou estimates newcomers move to Austin at a rate of approximately 42,000 per year. New residents coupled with a decrease in the number of new home starts locally may lead to a shortage over the next few years, he said. Three years ago, we were building at the pace of 18,000 a year, but last year, only 8,100 were built; this year, only 6,000 new homes will be built.

Angelou said this is an ideal time to buy, and that current sellers may consider waiting for increased demand and prices in the upcoming housing shortage.
Like in January and last fall, the number of transactions per month are still down as many borrowers face difficulty securing financing and investors wait for signs of confidence in the markets. Austin-area prices remain stable and affordable, and properties are selling, on average, after just 83 days on market.